Ag Decision Maker Activity
Strategic Planning Terms
File C6-40
Name ________________________
Barriers to entry
Barriers to exit
Business planning
Competitive enterprises
Complementary enterprise
Concentric diversification
Conglomerate diversification
Economies of integration
Economies of scope
Economies of size
Enterprise
Environmental scanning
Excess capacity
Experience curve
Internal scanning
Minimum efficient scale
Operations management
Portfolio management
Strategic management
Strategic planning
Vertical merger
Using the terms above, answer the following statements.
________________1. Systematic cost reductions that occur over the life of a
product. Product costs typically decline by a specific amount
each time accumulated output is doubled.
________________2. Factors that impede exit from an industry.
________________3. A comprehensive planning process designed to determine
how the firm will achieve its mission, goals, and objectives
over the next five or ten years or longer.
________________4. Diversification into an unrelated industry.
________________5. The act of identifying markets and assembling the resources
needed to compete in these markets. The set of managerial
decisions and actions that determine the long-run
performance of the firm.
________________6. Fixed costs decline as output increases.
________________7. The products of two or more enterprises produced from
shared resources which allows for cost reductions.
________________8. Focuses on the performance and efficiency of the
production process. It involves the day-to-day decisions of
the business.
________________9. The production of a single crop or type of livestock, such as
wheat or dairy. A responsibility center.
Ag Decision Maker Activity Continued...
Strategic Planning Terms
File C6-40
_______________10. Enterprises for which the output level of one can be
increased only by decreasing the output level of the other.
_______________11. Enterprises for which increasing the output level of one also
increased the output level of the other.
_______________12. The ability to produce additional units of output without
increasing fixed capacity.
_______________13. Factors that reduce entry into an industry.
_______________14. Looking inside the business and identifying strengths and
weaknesses of the firm.
_______________15. To monitor, evaluate and disseminate information from the
external environment to key people within the firm.
_______________16. Diversification into a related industry.
_______________17. Firms in different stages of the production and distribution
chain are linked together.
_______________18. A plan that determines how a strategic plan will be
implemented. It specifies how, when, and where a strategic
plan will be put into action.
_______________19. Cost savings generated from joint production, purchasing,
marketing or control.
_______________20. Management of a firm’s individual enterprises and resources
across these enterprises.
_______________21. The smallest output for which unit costs are minimized.
. . . and justice for all
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religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Many materials can be
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Issued in furtherance of Cooperative Extension work, Acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture. Cathann A.
Kress, director, Cooperative Extension Service, Iowa State University of Science and Technology, Ames, Iowa.